APR

Annual Percentage Rate. This is the compounded rate used to give a standard comparison of the amount of interest you are likely to pay on loans or outstanding credit card balances. A statutory method of calculating the Annual Percentage Rate of charge to repay the total charge for credit over the period of the loan. The APR is always higher than the headline rate, and is a realistic representation of the cost of the credit over time.

Balance transfer

Moving the outstanding balance (debt) on one or more credit cards to another card usually to obtain a lower overall interest rate.

Credit Card

A credit card gives you the power to buy goods or services now and pay for them later. It represents an approval by a bank or company to use their money.

Interest

The charge made for borrowing a sum of money. The rate of interest is the charge made, expressed as a percentage of the total sum loaned, for a stated period of time (usually one year). Thus, a rate of interest of (say) 15% per annum means that for every $100 borrowed for one year, the borrower has to pay a charge of $15, or a charge in proportion for longer or shorter periods.